The audited results confirm that 2025, the sixth consecutive year, was marked by strong business growth, an enhanced international presence and strategic investments. Despite challenging global conditions, the Group maintained a stable upward trajectory, driven by the consistent implementation of its strategy, a clear focus on core business segments, and continuous investment in technological development, production capacities and people.

Consolidated sales revenues reached EUR 1.32 billion, representing a 25% increase compared to the previous year, while net profit amounted to EUR 222.4 million. The order backlog at year-end stood at EUR 2.7 billion, ensuring high revenue visibility for the coming years and stable capacity utilization. Investor confidence was further reinforced by the growth in market capitalization and the Group’s strong position in the capital market.

Sustainability as a cornerstone of business strategy

Alongside strong financial performance, 2025 was also marked by the further strengthening of ESG as one of the key strategic pillars of the KONČAR Group. Sustainability is fully integrated into all levels of management and business decision-making, in line with the Sustainability Strategy of the KONČAR Group for the period 2024 – 2026, and represents an essential framework for long-term value creation.

In 2025, more than 80% of sales revenues were generated from activities aligned with the EU Taxonomy, while approximately 60% of total capital expenditures were directed toward such activities. These indicators clearly demonstrate that the Group’s growth is already firmly grounded in technologies and solutions that directly contribute to the energy and climate transition.

Decarbonization and the energy transition

One of the most significant sustainability milestones in 2025 was the development of a Climate Transition Plan, defining long-term targets and priority measures for reducing greenhouse gas emissions in the Group’s own operations, as well as establishing a framework for their gradual reduction across the value chain. This further confirms the Group’s strategic commitment to low-carbon development.

Throughout the year, KONČAR continued investing in renewable energy sources, low-carbon technologies, digital solutions and integrated energy systems, as well as in projects that enable customers to build more reliable, resilient and environmentally friendly infrastructure. The development and production of a new generation of trains marks an important step forward in the decarbonization of rail transport and demonstrates the application of advanced technological solutions with tangible environmental benefits. The continued modernization of public transport through the delivery of new trams further contributes to emission reductions and improved quality of life in urban areas.

People, responsibility and long-term value

Alongside product and project development, KONČAR continues to enhance responsible management of its own impacts, with a focus on reducing its carbon footprint, improving resource efficiency, strengthening circular economy principles, and advancing transparency and accountability in corporate governance.

Special attention is paid to employees – their safety, professional development, health and inclusion. The knowledge and commitment of our people remain key drivers of the Group’s long-term resilience and sustainable growth.

The audited annual report for 2025 confirms that financial performance and sustainability are inextricably linked at KONČAR. By integrating sustainability into its strategy, investments and daily operations, the KONČAR Group continues to build a long-term, responsible and internationally competitive industrial story focused on creating value for all stakeholders.